Gov't endorses cash support mechanism to make up for subsidy removal

[1/15/2018 3:25:40 PM]

AMMONNEWS - The cabinet on Monday endorsed a mechanism to pay cash subsidy to eligible households and individuals to make up for an imminent removal of bread subsidy and a hike in the tax imposed on selected consumer goods.

The subsidy will go to households and individuals whose annual income doesn't exceed JOD12,000 and 6,000 respectively, according to the decision. The subsidy will be paid as lump sum in February. Public servants, army and security agencies personnel, social security pensioners, and beneficiaries from the National Aid Fund will collect the financial support through their salaries.

The government urged other eligible groups to apply for the subsidy through a dedicated website (www.da3mak.jo), noting that more than 230,000 families have already signed up. According to the decision, each individual shall receive a total annual amount of JOD27.

Children of Jordanian women married to non-Jordanians and Gazans residing in the Kingdom are also eligible to receive the cash support. The government said about 6.2 million Jordanians will benefit from the support.

The move is part of a larger government fiscal and economic reform drive designed to overhaul the tax system and end the blanket subsidy system with the ultimate goals of securing financial stability, spurring economic growth and boosting the nation's self-reliance.

The sales tax will remain unchanged at 16 percent. Staples and goods such as rice, sugar, flour, bulgur and freekeh, legumes, oil and ghee, meat, poultry, fish, fresh and powder milk, formula, eggs and tea will not see any hike in taxation.

Other goods that will be excluded from any tax hike include school supplies, orthopedic devices, sensory assistance equipment, pesticides, agricultural fertilizers and veterinary medicines.

Additionally, the government decided to include all Jordanians above 60-year-old in the health insurance system in order to bring all Jordanians under the umbrella of comprehensive health insurance.